Subsidized Stafford Loans

A subsidized Stafford Graduate student loan is only given on a financial need basis. This means that the only way to get a subsidized graduate loan is if you apply and the amount of money you make is below the maximum amount. If the money you or your parents make is above the maximum for getting a subsidized loan, they will not award you one. With a subsidized graduate loan you will not need to make interest payments before you begin monthly repayments or when repayments are deferred. This is because the United States Government subsidizes interest payments then. Hence the name: subsidized loan.

An unsubsidized graduate student loan is not given because of your financial need. Most students no matter what their financial need is can take out an unsubsidized graduate loan as long as they are eligible. Unlike the subsidized loan you will have to make interest payments on the unsubsidized loan right after it is disbursed until the whole loan amount is paid back.

Am I eligible for a Stafford graduate student loan?

To be eligible for a Stafford graduate student loan you must be enrolled in an approved graduate program. You should be attending that graduate program at least part time.

What is the maximum amount that I can borrow?

The most that you can borrow is determined by how many years you have been in school and your reputation as a student at your school. You may not be able to borrow the loan's maximum amount. The best thing you can do is to check with your graduate school's financial aid department.

Are their any hidden fees?

Most lenders have stopped charging a guarantee fee on education loans. If your lender does charge a guarantee fee, it is probably about 1%. However, there will be a 3% origination fee.